PrepMaticCurrent affairs · October 2026
GST Council's 57th meeting recommends process reforms and removal of arrest powers
The 57th meeting of the GST Council was held in New Delhi on 8 October 2026 under Union Finance Minister Nirmala Sitharaman. Unlike the 56th meeting, which dealt with rate rationalisation, this one focused on process reforms: registration, returns, refunds and adjudication.
Main recommendations
| Area | Recommendation |
|---|---|
| Arrest | Withdraw arrest powers by omitting section 69 of the CGST Act |
| Prosecution | Raise the monetary threshold from ₹1 crore to ₹5 crore |
| General penalty | Cut the maximum under section 125 from ₹25,000 to ₹10,000 |
| Show cause notices | No notice if the tax involved is below ₹10,000 |
| Reduced penalty | 5% in non-fraud cases if tax and interest are paid within 30 days (section 73) or 60 days (section 74A) of the order |
| Refunds | Excess cash ledger balance refunded automatically; 90% of zero-rated and inverted duty claims provisionally sanctioned by the system |
| Late fee | Waived for taxpayers with turnover up to ₹5 crore if the late return is filed by the end of the month in which it was due |
| Small sellers | Simpler registration (new rule 14B) for e-commerce sellers passing on ITC of up to ₹2.5 lakh a month |
| Goods in transit | Interception only on specific intelligence, authorised by an officer not below Joint Commissioner |
The Council also approved in principle an optional Annual Return Quarterly Payment (ARQP) scheme for businesses with turnover up to ₹5 crore that supply only to unregistered persons.
These are recommendations. They take effect only through circulars, notifications and amendments to the law.
Why it matters for exams
GST Council decisions are regular banking awareness and general economy questions for IBPS, SBI, RBI Grade B and TNPSC. Read the Indian economy guide for the tax-structure background, and note exact numbers such as thresholds and section numbers.
Practice questions
Question 1
To what level did the 57th GST Council meeting recommend raising the prosecution threshold?
- A. ₹2 crore
- B. ₹5 crore
- C. ₹10 crore
- D. ₹25 crore
Question 2
Which section of the CGST Act would be omitted to withdraw arrest powers?
- A. Section 54
- B. Section 69
- C. Section 125
- D. Section 132
Answers
- B. The threshold would rise from ₹1 crore to ₹5 crore.
- B. Omitting section 69 withdraws arrest powers. Section 125 is the general penalty provision and section 54 deals with refunds.
Source
Recommendations of the 57th Meeting of the GST Council (PIB, Ministry of Finance, 8 October 2026).
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